Tuesday, 14 October 2014

Motivation - Multiple Sources of Income: The Not So Secret Way To Earn More Money and Get Rich.

If there is only ever one thing you take away from this blog it is this: there is no secret to getting rich.  There are no secret method used by rich people that is hidden in their books that you must spend a fortune to find out about. The truth to making money is very simple. The problem is most people think that becoming rich is hard, so they give up in trying to make their millions.

Multiple sources of income help you achieve your dreams
No matter what people tell you, making more money in your life is not hard. In fact it is very easy. It is so easy that people don’t believe it. Because they don’t believe it, they don’t commit to it. It is such a pity because if they put in the time and effort they could have a far better life.

There is no secret to creating wealth. It takes two simple steps, both which can be, and should be done at the same time. These steps are, having multiple sources of income, and saving money. These two steps together will quickly increase your wealth.

Multiple Sources of Income

Multiple sources of income is having more than just your wage coming in. You have three or more forms of income that bring money into your bank account. This can include such things as interest from savings, rent from an investment property, dividends from shares, royalties from selling books or music and/or working a second job. In fact you can all of them happening at the same time. 

Before you say that is easier said than done, I will tell you it is actually the opposite. The only down side to it is that it takes time and effort.  And that is why people fail.

The main problem for most people is that they want to be rich right now. They want it all handed to them and not have to do any of the work required. Of course, most of us know that that just doesn’t happen. 

The lazy life style has never helped anyone to succeed in life. To be truly successful in life you need to work and commit to your future. So let’s look at what is needed to become rich.

First, and this is the sad point, is you need to work. You need to have money coming in so that you can save it up for your investments. Work also allows you to develop skills that you may be able to utilise in the future to create another source of income. 

At this point we will look at saving money and why it is so important.

Saving Money

Before we go to far, I will tell you the truth about saving money. No one has ever become rich from just saving money. However, you can not become rich unless you can save money.
Let's get to the point, the money that you earn from working needs to be saved. The sad truth is that the money you save will not be enough to make you rich. You will never be able to save enough to make you rich, even wealthy. Plus you face the fact that the interest you earn on savings is taxed and that severely limits the amount of money you will ever earn from your savings.

Learn to save money so you can invest in the future.
Your savings are not there to simply earn you interest, they are there so that you can use that money to buy you an investment. Of course the interest on your savings will help you get to the amount your need for your investment faster. 

If you don’t save money then you will never have money for investments. You need to limit how much you are spending. You need to stop buying the impulse buys and just wasting your money.

You need to set up various accounts for your money. Set up one for bills, one for savings and one for general spending. Have your money divided up into the accounts in the amounts that you want. That way you will always have money for investing. 

If there is one little known factor about rich people is is that they don’t spend their money. They spend the money that their money makes them. The money they earn goes into savings and investments, then they spend the money those investments make. That way they never run out of money

Another example would be winning the lottery. If you were to win $20 million, I would advise you from spending any of the money. Just spend the interest that you earn. It is still a lot of money, and you will always have the $20 million. 

Now you know why saving money is important, we can go back to talking about multiple sources of on income.

Multiple Sources of income part 2

When you have saved enough to invest you need to decide what you want to invest into.  As I mentioned early in this article there is a vast array of investment opportunities. You have to decide what is the best for you. 

One of the reasons you want investments is because it is taxed differently. Any losses you make on investment may be offset against your income allowing you to pay less tax. This differs from bank fees on your savings which you can not offset. 

Through a properly set up investment, you can earn more money and pay less tax. To achieve this I would suggest talking to an accountant of financial adviser. These people have a wealth of knowledge in tax laws, and they will stop you from getting in trouble with the tax man.

Multiple sources of income can create a lot of wealth
The main areas that people invest are into houses and shares. Both have potential earnings, capital growth and both have potential tax offsets. If you are interested in either, or even both, then I suggest buying some magazines that are about housing or shares and start learning. To be successful you must have a good understanding of how things work in your investment area. That way you can avoid mistakes and get tips on how to make things work better.

By just working, saving and buying one rental property and a small amount of shares you can create three to four multiple sources of income. You will be earning more money and paying less tax. And you could be in this position in anywhere from 1 to 5 years depending on how you are willing to save and commit to your financial future.

At this point things get a little easier. You will have more money coming in and you will be able to invest into more. That’s when the real problem starts. The more your earn, the more you invest, forcing you to earn more. Oh what a problem to face.

Of course it is not a simple as that, but the process is not that hard. This is the process followed by a lot of rich and wealth people around the world. It is also the process followed by your truly, and I can tell it is working.

Asides from investing into shares and houses there are other things you can do to have multiple sources of income. You can, if you like, run your own business. This can be a physical store or an online shop. Remember that unlike shares or houses, running your own business means you will have to put a lot of work into it. Don’t let that stop you, because as a business owner you have the potential to make as much money as you like. Every large business started small somewhere. 

If you are like me, you want to earn an income from doing the least amount of work. I achieve this by writing and selling books. This still requires work, but once the work is done then the book can stay on sale forever, always paying me an income. This works for me because I like writing, but it may not be every bodies cup of tea.

There are a lot of ways to bring in extra cash as well. All you have to do is use your imagination. The only advice I will give in this section is, make sure all of your efforts are ethical. The better the quality you give to people, the more you can charge and potentially earn. This works the other way for unethical businesses. 

Then when you have more money coming in than what you earn from working, you can retire. You can start living the life you always dreamed of. Mind you, as you start to earn more money from you various sources of income, the your better life will be. You will have more money for holidays or to buy the nice stuff that you like.

Just remember a few things. There is no such thing as get rich quick. Anybody offering you this is only trying to get rich by selling you false hope. Secondly, no matter what the multiple sources of income you have, they all need some sort of work. There is no set and forget business. The work you do maybe minimal but everything will need some work at some point. 

If you are looking to increase your money through multiple sources income and reduce the amount of work you want to do, you can always outsource the work. It will cost you to do this, but it will take away a lot of the hard work, freeing up your time. Then all you have to is check over what has been going on on a regular basis. 

Training course can help you learn about investing
To do any of this you will need advice. Buy magazine that focus on your chosen area and learn what you need to learn. Attend course by professional about investing.Seek out accountant and financial advisers and let them guide you, especially in legally reducing your tax. Also talk to people who are doing what you want to do. You will find that the people who are successful will be wanting to help you, if you are serious about doing it.

Most rich people actually like helping those who are willing to give it a serious try. They like sharing their knowledge as helping someone else helps them to be more motivated and do more. Then in the not to distant future you can be in a position to help others.

See there is no secret to how to become rich. You didn’t have to pay for the advice either. It is just a matter of earning, saving, investing and repeat. Having multiple sources of income. That is how everyone has ever done it. You will not be rich overnight, but you will see the rewards quickly, especially if you plan what you want to do and commit to it. Put in the time and effort and soon you will be living a life that you have dreamed. I know that you can do it.

Savings and multiple sources of income will make turn your dreams into reality.

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